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Uncompensated overtime

Article Abstract:

Uncompensated overtime is the time that exempt employees spend working after completing 40 hours of paid labor per week or eight hours per day. Exempt employees are not required by the Fair Labor Standards Act to be paid an hourly rate of one-and-one-half times their normal rate for overtime. Several types of firms that employ workers whose salaries are related to final cost objectives based on the number of hours worked are affected by uncompensated overtime, including accounting, law, and engineering firms. The cost accounting techniques that organizations can use to account for direct labor include 40-hour accounting and full-time accounting.

Labor costs, Overtime

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Weyerhaeuser: streamlining payroll

Article Abstract:

Activity-based accounting can be used to measure the efficiency of a payroll department. Employees, once provided with departmental cost data, can then develop process efficiencies that should result in cost efficiencies. Such an exercise requires extensive employee participation as the experience of Weyerhauser Co's Payroll Services Department shows. The company's cost review process, which involved inputs from all payroll department employees to determine the cost profiles of key activities, resulted in the identification of 12 significant proposals with a projected annual cost savings of $558,500.

Paperboard mills, Pulp mills, Weyerhaeuser Co., Payrolls

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